Reece Group’s HY19 results announced

We are pleased to announce another strong set of financial results for the half year ending 31 December 2018, following the acquisition of US business, MORSCO.

Sales revenue for the six months was up 104% to $2,718m (2017: $1,332.2M). Normalised Earnings Before Interest Tax Depreciation and Amortisation (“EBITDA”) increased by 45% per cent to $260.1m.

This is another solid result for the Reece Group which includes the performance of MORSCO for the first time. The US business is performing in line with expectations.

The long-term strategy for the integration of MORSCO is on track. In the first half of FY2019, new operating rhythms have been established, and work has begun on defining the vision and values of the US business.

In Australia and New Zealand, Reece has continued to provide a world-class customer experience, while investing in digitisation and innovation. We have focused on delivering customised service through our expertise, quality products, digital offering and innovative thinking.

Reece also welcomed 20 new branches to the Australia and New Zealand network through organic and acquisition growth. This included establishing our HVAC presence in New Zealand and expanding our network into the South Island. In the US, MORSCO opened two new outlets in the Sun-Belt region.

Reece Group Chief Executive Officer and Managing Director, Peter Wilson, said: “We are seeing a more moderate growth in the residential building market in Australia, while non-residential commencements remain strong. Business momentum in the US continues, with construction and investment in infrastructure returning to long-term averages.”

“Looking to the second half, we will continue to invest in customer experience in Australia and New Zealand, while building our long-term strategy for MORSCO”, Mr Wilson said.

The Board has declared an interim dividend of 6 cents per share fully franked. The interim dividend will be paid on 28 March 2019 with the record date for entitlement of 20 March 2019.